30 November 1992 External T.I. 9231335 F - Advantages Out Of An RRSP

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Attention:  19(1)

November 30, 1992

Dear Sirs:

Re:  Registered Retirement Savings Plans (RRSPs) Advantages Under Paragraph 146(2)(c.4)

This is in reply to your letter of October 20, 1992 in reference to our letter to you of September 1, 1992.

While we recognize that the subject matter of your request may be generic to the mutual fund industry, we are of the opinion that it also appears to relate to a contemplated proposal to undertake such activities in the marketing of one or more specific mutual funds.  Therefore, as stated in paragraph 21 of the Department's Information Circular 70-6R2 Advance Income Tax Rulings, it is our view that it should be the subject matter of an advance ruling request rather than an opinion.

In general, as we stated in our previous letter, amounts paid into a plan in connection with the assets of a plan are not considered advantages to the plan's annuitant.  Expanding on this, we can also state that expenses incurred by a trustee in the overall maintenance of a plan's assets will generally be considered to be in connection with the plan's assets. We would also like to caution that in some instances it may be reasonable to assume amounts paid to an RRSP, at an annuitants request, will be income to the annuitant and contributions to the RRSP.

We regret that our reply could not be more specific to your concerns but trust that you understand our position.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate